State Farm Insurance is leaving Florida

By
Real Estate Agent with Sand Dollar Realty Group, Inc. BK627826

That's what State Farm claims at least regarding their homeowners insurance division.  The State of Florida did not approve the rate hike that State Farm wanted, so State Farm is planning on pulling out of the homeowner insurance business in Florida over the next 2+ years.  That will leave many Florida homeowners scrambling to find new coverage.

hurricane   I've never done business with State Farm, so I can't give an opinion on them.  I used to do business with Allstate until they canceled my homeonwer's policy about 2 years ago (even though I had them for 7 years and never filed a claim).  I now only do business with local Florida insurance companies for my personal residence and my rentals.  It is probably best anyway because the bigger the company is, the more bureaucratic it gets.

Governor Crist didn't seem to care about the announcement.  He indicated that he thinks their rates are already too high.  My biggest concern is that more people will continue to insure with the state-owned Citizens Insurance.  And all it takes is another major hurricane to come through here and Citizens will become basically insolvent due to all the claims that will get filed.

You can read the whole story in the Orlando Sentinel

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Rob Arnold - Your full service and investor friendly Realtor ® in Orlando and Central Florida.

ABR, CPL, CRB, CSP, GRI, Managing real estate broker, Notary Public

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Rainer
13,815
Tony Wangrycht
OneAmerica - Seminole, FL - Seminole, FL

Rob, Good info. I for one have been a State Farm customer for 21 years, and have never filed a claim against my homeowners policy...what a slap in the face after paying them premiums this long. I've decided to start looking for a new insurer to cover, not only my home but our auto as well. I believe that if State Farm doe not want to write homeowners insurance any longer, they should not be allowed to write auto insurance or any other type of insurance as well.

Jan 28, 2009 05:54 AM #1
Rainer
24,854
Charles Fischer
Housing Market Realty - Merritt Island, FL
Professional Real Estate Services

Rob: I had several rental policies with State Farm.  They have cancelled all but one to date.  They even had the guts to call me after they cancelled and ask for my car insurance business.  I think it is a scare tactic regarding leaving the state, but if they are serious, let them go.  The number of existing policies can't be that high after all the cancelling they have done.  Any idea of how many home they still insure?

Jan 29, 2009 02:04 PM #2
Rainmaker
236,392
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Rob - I really think that the State of Florida needs to allow these companies to make their rate increases, if their customers choose another company for a lower price so be it... What has happened to the Open Market?  Citizens is a mess, I think that we need to allow consumers to choose for themselves.

Jan 31, 2009 01:17 PM #3
Rainer
478,183
Not a real person
San Diego, CA

If I remember correctly, they are in the process of leaving California, too, because of the preponderance of wildfires the last several years. As more and more people move here, and more people re-locate to the wildlands, it's going to get worse before it gets better.

Jan 31, 2009 09:06 PM #4
Rainer
147,747
Eva Erdmann
Lion International Inc. - Holiday, FL
interior decorator

I have been for many years with Allstate and I never had a problem with them but eventually I have switched to State Farm for better rate for both homeowners and vehicle coverage.At the beginning everything was fine but they would take the money and didn't want to pay the claim.My loss occurred in August of year 2002,I didn't get payed till today.They are not what I have expected them to be.No wonder they are moving from Florida,they certainly took adventage of a lot of people who were paying them premiums but when it was their turn to pay a claim there was a problem.I don't know if I will ever get my money after I got my vehicle stolen.

one of the victims of a fraud 

Eva

Mar 19, 2009 12:40 AM #5
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Rob Arnold

Metro Orlando Full Service - Investor Friendly & F
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